Square Enix has experienced a significant loss of about $2 billion in market value since the release of Final Fantasy 16 in June, raising doubts about the company’s prospects for recovery.
Since the game’s release on June 22, the company’s shares have dropped by almost 30%, reaching their lowest level since May of the previous year on 13 September.
Although the PlayStation 5 exclusive managed to sell three million copies during its opening week, this number sparked online discussions about whether it had exceeded Square Enix’s sales projections. In July, Square Enix informed IGN that Final Fantasy 16’s sales performance was “powerful” and emphasized that given the PS5’s installed base, it had made large sales.
Square Enix released two paid DLC additions for Final Fantasy 16 and confirmed the development of a PC port in early September.
The trailer for Final Fantasy VII: Rebirth was released at the Summer Game Fest in 2023
Square Enix, which reported a significant fall in profits in August, is depicted grimly in a recent Bloomberg report. Final Fantasy 16 couldn’t make up for the poor sales of earlier Square Enix games like Marvel’s Avengers and Forspoken and mobile games that were abruptly pulled from stores after their first releases, according to analysts cited by the journal.
The producers’ “full autonomy” over the scope and course of their initiatives, which might change suddenly, is the main problem, according to sources consulted by Bloomberg. The quality of the finished product subsequently varies as a result.
Square Enix has hired Takashi Kiryu as its new CEO to address these issues. Kiryu intends to prioritize high-budget games with the potential to significantly influence the company’s financial performance over smaller, smaller gaming projects. Square Enix has chosen not to make an official statement regarding the situation.